5th Jun 2015 07:08
LONDON (Alliance News) - Cathay International Holdings Ltd Friday said it has found a new chairman, electing to promote an existing director in a move at odds with the UK Corporate Governance Code.
The China healthcare investor said that Wu Zhen Taois to succeed Sum Soon Lim as chairman.
Wu was previously an executive director at Cathay, as well as serving as the chairman of its Executive and Remuneration Committee, meaning he is not deemed to be independent under the UK Corporate Governance Code, a set of standards of good practice published by the Financial Reporting Council, a UK regulator.
"The board recognises the recommendations of the code, however, given his understanding of the group and his skills in corporate stewardship, the company considers Mr. Wu to be a formidable asset to the business and that his continued involvement in the company satisfies the main principles of the code," Cathay International said in a statement.
According to the UK Corporate Governance Code, a chairman should, on appointment, meet its independence criteria, which include whether such an individual has been employed by the company in question within the previous five years.
Sum is retiring but will remain on the board as an independent non-executive director, the company said, joining Kenneth Toong.
According to Cathay International, Sum "was independent upon his appointment to the board" and not involved in the company's affairs on a daily basis, while Toong "is considered independent of character and judgement within the criteria set within the Code".
The UK Corporate Governance Code states that a smaller company should have a minimum of two independent non-executive directors.
Shares in Cathay were untraded on Friday morning. The stock last traded at 25.80 pence.
By Samuel Agini; [email protected]; @samuelagini
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